On Jul 29, 2011, at 7:15 PM, martin schiller wrote:
> While losing 3a rating will cause everyone's credit costs to increase I haven't heard any discussion about how it would affect the tax exempt interest earned by new investments in bond issues.
I guess what I'm wondering is whether this default theater is a 'false flag' incident to create an excuse to reduce rating/increase interest paid out to tax exempt investors (who are sitting on a lot of money to invest somewhere.)